Below is a list with tagged columns and company profiles.

Today's Headlines Sumatra

  • Internet Penetration in Indonesia still Low at 25% but Rising steadily

    Internet Penetration in Indonesia still Low at 25% but Rising steadily

    Research institute Frost & Sullivan expects that broadband internet penetration in Indonesia (fixed and wireless) will grow to 25% at the end of 2013 and, depending on the development of the Palapa Ring, to 45% by 2018. Internet growth in Indonesia is particularly supported by the mobile broadband segment due to high demand for social media applications and mobile videos among the younger generation of Indonesians. By 2015, about 145 million Indonesians will have internet access. Currently, Indonesia's population numbers about 250 million people.

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  • Tambang Batubara Bukit Asam: A Leading Indonesian Coal Miner

    Indonesia Investments has updated the company profile of Tambang Batubara Bukit Asam. This state controlled company is one of the largest coal mining companies in Indonesia and has vast coal mines in South Sumatra, West Sumatra and East Kalimantan. The company feels the impact of global economic turmoil as can be seen from the 44.2 percent fall in net income over the first six months of 2013 compared to the same period in 2012. A weakening coal price in combination with higher costs of sales were the underlying reasons. 

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  • PP London Sumatra Indonesia: Feeling the Impact of Weak Global Demand

    Perusahaan Perkebunan London Sumatra Indonesia (PP London Sumatra Indonesia or Lonsum), controlled by the powerful Salim Group, is an Indonesian plantation company focused on the production of palm oil, rubber, tea and cocoa. Its estates are located on the islands of Sumatra, Java, Kalimantan and Sulawesi. Amid weak global demand for commodities, the company posted a 72.1 percent fall in net profit over the first six months of 2013. Its shares have fallen 48.0 percent since the first trading day of 2013.

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  • Indonesia's Most Populous Island Java Continues to Dominate the Economy

    The economy of Indonesia continues to be dominated by the island of Java, Indonesia's most populous island with around 130 million people or 60 percent of Indonesia's total population. In the second quarter of 2013, Java contributed 58.15 percent to the nation's total economic growth. Far behind Java are Sumatra (23.90 percent) and Kalimantan (8.73 percent). Within Java, the Greater Jakarta area accounts for 16.50 percent of the country's total economic growth, followed by East Java (15.21 percent) and West Java (14.05 percent).

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  • Huge Forest Fires on Sumatra Endanger Singapore's Health and Economy

    Forest fires on the Indonesian island Sumatra have brought severe smog over Singapore's skyline for the past five days, reaching record breaking levels of air pollution in Southeast Asia's wealthy city state. The forest fires are believed to be caused by illegal slash and burn practice on Indonesia's forest-rich island of Sumatra (for palm oil expansion) and represent a recurring problem in the dry season. Besides the environmental disaster, the forest fires cause health issues as well as economic losses for Singapore.

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  • Indonesian Government Makes Fund Available for Geothermal Exploration

    Bloomberg reported that the investment agency of Indonesia's finance ministry will start a fund of IDR 3 trillion (USD $302 million) to finance the exploration of geothermal energy resources in Indonesia this year. Saritaon Siregar, the agency’s chairman, said this in an interview at a conference in Jakarta this week. The investment fund is in line with Indonesia's intention of lowering its dependency on expensive and environmentally unfriendly fossil fuels as a source for energy and electricity.

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  • Indonesia's GDP Slows Down to 6.02 Percent in Quarter 1 - 2013

    Today, Statistics Indonesia released Indonesia's economic growth figure for the first quarter of 2013. Compared to Q1-2012, Indonesia's gross domestic product (GDP) grew 6.02 percent. This growth was supported by almost every sector except for Mining and Extracting, which fell 0.43 percent (YoY), indicating that natural resources are still not back on track. The largest contributor to Indonesia's Q1-2013 growth is Transportation and Communication, which grew 9.98 percent.

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  • Indonesia's Coal Production Projected to Rise Due to Increased Foreign Demand

    Indonesia's coal production is projected to increase 4.4 percent to 400 million tons this year, up from the government's initial forecast of 390 million tons. According to Bob Kamandanu, chairman of the Indonesian Coal Mining Association (Asosiasi Pertambangan Batubara Indonesia, APBI), this growth will be spurred by increased demand from Japan, South Korea, Thailand and Taiwan in June. The coal price is expected to increase accordingly in the middle of the year.

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  • Indonesian Cement Producer Semen Baturaja Prepares IPO on Stock Exchange

    PT Semen Baturaja Tbk, a state-owned cement producer, will offer 20 to 35 percent of its equity to the public when it conducts its initial public offering (IPO) on the Indonesia Stock Exchange in June or July 2013. Initially, the Indonesian cement company was planning to conduct the IPO in 2012 but disagreement within the House of Representatives (DPR) - the government institution that needs to approve the IPO - resulted in a temporary postponement.

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Latest Columns Sumatra

  • Infrastructure Indonesia: Light Rail Transit (LRT) in Palembang

    Infrastructure Indonesia: Light Rail Transit (LRT) in Palembang

    Two state-controlled companies (both listed on the Indonesia Stock Exchange) are expected to feel the positive impact of the light rail transit (LRT) in Palembang (South Sumatra), a transportation project currently under construction. These two companies are construction firm Waskita Karya and cement producer Semen Baturaja. These two companies are heavily involved in the LRT project that is estimated to cost around USD $520 million. This LRT track is supportive infrastructure for the 2018 Asian Games, to be held in South Sumatra in August 2018.

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  • Attracting Investments: Rebranding the Image of Indonesia's Aceh Province

    Attracting Investments: Rebranding the Image of Indonesia's Aceh Province

    The Regional Investment Coordinating Board said that Aceh (Sumatra), known for its strong Islamic identity, expects to receive IDR 5 trillion (USD $438.6 million) in foreign and domestic investment in 2014. In the first quarter of 2014, Indonesia's western-most province already saw IDR 2 trillion (USD $175.4 million) worth of investments. Aceh, a resource-rich province (in particular oil and natural gas), is one of the more mysterious Indonesian provinces and has had to deal with considerable negative publicity throughout its modern history.

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  • Infrastructure: Tender for Construction of Kuala Namu-Tebing Tinggi Toll Road

    Infrastructure: Tender for Construction of Kuala Namu-Tebing Tinggi Toll Road

    The local government of North Sumatra stated that a number of foreign investors have shown interest to participate in the tender for the construction of the Kuala Namu-Tebing Tinggi toll road. The toll road will connect the new Kuala Namu International Airport to the city of Tebing Tinggi, approximately 30 kilometers from North Sumatra's capital city of Medan. Kuala Namu is designed as Indonesia's air traffic hub for Southeast Asia as it has a more strategic location to Kuala Lumpur, Singapore and Bangkok compared to Jakarta's Soekarno-Hatta airport.

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  • Infrastructure Development Update Indonesia: Trans-Sumatra Highway

    In 2015, Indonesia's Ministry of Public Works will start with the land acquisition process for the construction of the Trans-Sumatra Highway. This highway is a 2,732.2 kilometers-long toll road connecting Banda Aceh in the north of Sumatra to Bandar Lampung in the south through 23 routes that connect ten provinces. The total land area that needs to be acquired is roughly 218,976 million m² and is expected to cost around IDR 15 trillion (USD $1.3 billion). By 2025, construction of the project should be finished.

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  • Groundbreaking of Sunda Strait Bridge Project Unlikely to Occur in 2014

    Sunda Strait Bridge Jembatan Selat Sunda Indonesia Investments

    Due to uncertainty over the feasibility study, it seems highly unlikely that groundbreaking of the ambitious Sunda Strait Bridge project can be conducted in 2014. There has been a long delay with the feasibility study as differences of opinion emerged over who would undertake the study and how it will be financed. Economic Minister Hatta Rajasa said that if the government considers the project to have high priority, then it should make a decision now. If not, Indonesia's next government - after the 2014 elections - will be burdened with the issue.

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  • State-Owned Cement Producer Semen Baturaja Conducts IPO

    IPO Semen Baturaja Indonesia Investments Richard van der Schaar

    State-owned cement producer Semen Baturaja invites investors to its initial public offering (IPO) between 29 May and 7 June 2013 at the Ritz Carlton Pacific Place in Jakarta. Through this IPO, the company offers 2.34 billion shares (about 23.76 percent of its stock equity) to the public with an initial price target of IDR 500 - 685 per share (USD $0.05 - $0.07). Semen Baturaja will be listed on the Indonesia Stock Exchange (BEI) on 28 June 2013. The lead underwriters for this IPO are Bahana Securities, Danareksa Securities and Mandiri Securities.

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  • Indonesia's Cement Consumption Grows 8.6% in January - April 2013

    Cement Production Consumption Indonesia 2013 Richard van der Schaar

    Cement consumption in Indonesia increased 8.6 percent to 18.11 million tons in the first four months of 2013. Demand was particularly supported by property and housing projects in the bigger cities of Indonesia. Another pillar of support was found in the development of various infrastructure projects (including those within the framework of the government's ambitious MP3EI plan). The Indonesian Cement Association expects this year's cement consumption in Indonesia to rise to 61 million tons in total.

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  • The Issue of Inequality Within Indonesia's Booming Economy

    The economy of Indonesia is booming with gross domestic product (GDP) surpassing six percent on an annual basis. And the country's strong economic fundamentals are confirmed by increasing international attention. But within the context of this economic growth it is important to take a look at whether economic growth is shared by all segments of Indonesian society. If, for example, only the higher classes of Indonesia would benefit from the economic boom, it could give rise to social issues in the future.

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  • Still Many Uncertainties Surrounding Indonesia's Sunda Strait Bridge (JSS)

    Sunda Strait Bridge - Jembatan Selat Sunda - JSS Indonesia Investments

    The Sunda Strait bridge, a planned road and railway connection between the two western Indonesian islands of Sumatra and Java, has been a dream of Indonesia's political elite since the 1960s. From both a political and an economic point of view, the connection between these two islands through physical infrastructure is a grand ideal. However, as with many other infrastructure projects in Indonesia, its realization tests people's patience.

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